Wealth Management Platform's Insights Engine Unveils Key Data-Driven Strategies Leveraged by Enterprise Advisors and RIAs to Optimize Client Portfolios & Grow Their Practices
BERWYN, Pa., Jan. 16, 2025 -- Envestnet has revealed the top insights leveraged by advisors on its wealth management platform in 2024, which include two major themes dominating the landscape for both enterprise advisors and registered investment advisors (RIAs) – enhancing portfolio outcomes for clients by addressing underperforming products and leveraging tax strategies, like tax-loss harvesting.
"Advisors are leveraging these insights to enhance their clients' portfolios and develop more personalized, tax-efficient strategies," said Molly Weiss, Group President, Wealth Management Platform
To learn more about Envestnet's Insights Engine, please visit https://www.envestnet.com/data-intelligence.
"Our Insights Engine tool aligns with our mission to simplify workflows by alerting advisors on specific and relevant information about their client's accounts and holdings," said Molly Weiss, Group President, Wealth Management Platform, Envestnet. "Advisors are leveraging these insights to enhance their clients' portfolios and develop more personalized, tax-efficient strategies. The ability to quickly identify and act on these insights continues to be one of the key benefits of our platform."
Powered by Envestnet's AI-driven Insights Engine, which analyzes client data to uncover hidden opportunities, risks, and pain points, and generates actionable steps that advisors may want to take to engage with each client—these top insights, broken out for enterprise advisors and RIAs, showcase the strategic areas that advisors prioritized for their clients this year. The two separate rankings highlight distinct patterns between the two groups of advisors.
Envestnet releases these insights at a time when more advisors are turning to advanced technology to enhance their decision-making, with a clear trend in the industry toward the adoption of artificial intelligence (AI). While only 9% of practices surveyed currently offer AI tools, nearly three-quarters (72%) plan to incorporate AI into their practices within the next three years, according to a recent Cerulli report1. This growing embrace of AI aligns with Envestnet's continued leadership in integrating AI through its Insights Engine, helping advisors uncover data and make more informed, actionable decisions.
Key Comparisons: Enterprise Advisors vs. RIAs
Over the past year, both enterprise advisors and RIAs have prioritized identifying underperforming products and opportunities for tax-loss harvesting—two key strategies that can improve client portfolios in a volatile market. However, there are notable differences in their third-ranking insights. For enterprise advisors, addressing life-insurance gaps ranked third, which may present an opportunity for advisors to further differentiate themselves in the market by offering more holistic services including insurance. In contrast, the identification of high-fee products ranked third for RIAs, signaling a growing trend among independent advisors to seek more cost-efficient investment solutions for their clients. (High-fee products also ranked fourth for enterprise advisors.)
Another key similarity is the prominence of the "retiring this year" insight, which appeared in the top ten for both groups. This underscores the growing importance of retirement planning as an ongoing focus for both enterprise and RIA advisors.
"Having underperforming products and tax-loss harvesting at the top of both lists shows that advisors are increasingly turning to these insights in an effort to improve client outcomes, regardless of advisor type," said Jeremi Karnell, Head of Envestnet Data Solutions, Envestnet. "These strategies help mitigate risk and optimize tax advantages, making them valuable in any market environment."
About Envestnet
Envestnet is helping to lead the growth of wealth managers and transforming the way financial advice is delivered through its ecosystem of connected technology, advanced insights, and comprehensive solutions—backed by industry-leading service and support. Serving the wealth management industry for 25 years with more than $6.5 trillion in platform assets—more than 111,000 advisors, 17 of the 20 largest U.S. banks, 48 of the 50 largest wealth management and brokerage firms, more than 500 of the largest RIAs—thousands of companies depend on Envestnet technology and services to help drive business growth and productivity, and better outcomes for their clients. Data as of 9/30/24.
For a deeper dive into how Envestnet is shaping the future of financial advice, visit www.envestnet.com. Stay connected with us for the latest updates and insights on LinkedIn and X (@ENVintel).
Disclosure
Potential transactions identified by the Insights Engine are for informational purposes only and are not to be construed as an instruction to take any specific action. Envestnet, Inc. and its subsidiaries and affiliates are not responsible for any decisions or recommendations you may provide to your clients.
Envestnet and its representatives do not render tax, accounting or legal advice. Any tax statements contained herein are not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Taxpayers should always seek advice based on their own particular circumstances from an independent tax advisor.
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1 Cerulli Associates 2024 Private Wealth Management Executive Survey |
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